The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
  • Login
  • Register
  • Login
  • Register
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
  • 1

    Chinese hackers attack 12 Korean academic institutions: KISA

  • 3

    Koreans stunned by spike in heating costs

  • 5

    From period to action: different genre series set for February

  • 7

    More than dozen chaebol scions indicted on alleged drug use

  • 9

    Campaign launched to respect multicultural families, foreign nationals

  • 11

    Netmarble debuts virtual girl group MAVE:

  • 13

    Korea's move to cut subsidies on imported EVs faces backlash

  • 15

    Cargo ship carrying 22 sinks off Jeju, 14 rescued but 9 unconscious

  • 17

    Lawmaker pushes for bill requiring women to join civil defense training

  • 19

    Seoul subway, bus fares to rise by 300 or 400 won

  • 2

    Homeless women struggle to find place to spend night

  • 4

    Heavy snow hits Seoul, surrounding areas

  • 6

    Chinese hackers threaten to attack S. Korean cybersecurity watchdog

  • 8

    Cold wave warnings issued across Korea; Seoul witnesses coldest day

  • 10

    Why Korea imports so much kimchi from China

  • 12

    Center offers free STI testing to foreign residents of Korea

  • 14

    People attempt to cut surging heating costs with creative solutions

  • 16

    ANALYSISChina's reopening to help ease inventory woes

  • 18

    Major Korean banks' overseas branches sanctioned by foreign authorities

  • 20

    Yoon calls for adjusting regulatory, labor systems to global standards

Close scrollclosebutton

Close for 24 hours

Open
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
Fri, January 27, 2023 | 20:18
Times Forum
GM in Asian Auto Market
Posted : 2009-06-14 15:34
Updated : 2009-06-14 15:34
Print PreviewPrint Preview
Font Size UpFont Size Up
Font Size DownFont Size Down
  • facebook
  • twitter
  • kakaolink
  • whatsapp
  • reddit
  • mailto
  • link


By Michael R. Czinkota and Charles J. Skuba

The U.S. government now owns 60 percent of General Motors. Some say that the company really belongs to the taxpayers ― but just have them try to sell some of ``their'' GM shares ― they'll quickly see how limited their ownership rights are.

U.S. officials now have a new mandate that is familiar to business executives: meet increased sales goals in an ever-expanding sales territory. If GM is to succeed, global sales and operations, not just American, must be a priority.

In an industry that is among the most competitive in the world, GM's future will inevitably be linked to global markets and how well it does as an Asian car company.

Of course, this is not lost on GM. Indeed, at the same time as the firm filed for Chapter 11 protection, CEO Fritz Henderson said that ``China remains a key part of our business. Our ventures in China are a critical part of the new GM ― unequivocally. Our business in China continues to grow at a very fast, even torrid pace and remains a critical part of GM going forward.''

As GM pares down its presence in Europe with the sales of Opel and Saab, the company has expansive ambitions in Asia.

China is GM's largest growth market. The firm has more than 20,000 employees, enjoys booming sales and occupies the leading position among global automakers with market share of about 12 percent in the region.

GM has numerous Chinese joint ventures including major deals with Shanghai Automotive (SAIC) and Wuling to sell Chevrolet, Buick and Cadillac as well as Wuling-brand light commercial vehicles. The China Daily reported that GM plans to open a new factory and double sales in China over the next five years.

Another significant Asian market for the new GM will be South Korea, where it is the majority owner of GM Daewoo Auto & Technology, Korea's third largest automaker.

While GM Daewoo has struggled with the global downturn in auto sales and is seeking support from the Korea Development Bank, GM executives have stated that the company plans to expand its GM Korean operations.

Elsewhere in Asia, auto markets have been more depressed by the economic crisis, yet GM plans for growth throughout the region with emphasis on Thailand and India. In fact, GM is seeking local financing in Southeast Asia to expand operations.

In India, look for GM to engage Tata's Nano in competition with its own version of a mini car. India should be a hot market as the country continues its strong economic growth.

With 95 percent of the world's customers living outside the United States, GM must look overseas for long-term expansion.

The new GM ad campaign promises that ``GM gets down to business'' with the ``rebirth of the American car.'' But this rebirth better be with Asian consumers in mind.

As GM searches for innovations in the small car market, Korea, China and India will be the most logical sources of cutting-edge products.

GM's long-term success in Asia, and perhaps globally, will likely come from four-cylinder, fuel-efficient cars developed by GM Daewoo or in China at GM's Pan Asia Technical Automotive Centre (PATAC) joint venture with SAIC.

The growing needs of Asian markets will require adjustments in production capacity and product. Consistent with the product cycle theory, over time, established products are produced in new locations with more local advantages.

Asian production sites with lower cost structures and locally based R&D are essential for the new GM to fulfill its mission. To succeed in its post-bankruptcy life, GM will need to rationalize its global production platform to maximize economies of scale and eliminate waste.

While GM will need to temper its ambitions to avoid mistakes of the past, it must compete globally or be marginalized as a niche competitor. However, global efficiency becomes particularly sensitive if GM uses overseas production facilities to import cars to the United States.

Indeed, the U.S. administration's rescue plan for GM is contingent upon producing more cars in the United States, even as it closes factories and eliminates jobs at home.

Yet, inefficient production is one of the principal reasons for GM's Chapter 11 filing and should not be championed under the guise of protecting American jobs.

Utah Gov. Jon M. Huntsman, the designated U.S. ambassador to China, has his work cut out. He will be confronted with competitive realism while supporting American idealism. But he's the right man for a tough job.

The Obama administration may not intend to be an active manager of the new GM but its policies on trade, foreign investment and taxation will shape the company's future.

Government policies must allow and even encourage GM to be competitive not just at home, but also abroad. Don't expect administration officials to go on commission, but, whether they like it or not, they have a new obligation to help GM increase sales. Asia is the smart place to look.

Michael Czinkota researches international marketing issues at Georgetown University in the United States and the University of Birmingham in the United Kingdom. Charles Skuba teaches international business and marketing at Georgetown University.
 
wooribank
Top 10 Stories
1Homeless women struggle to find place to spend night Homeless women struggle to find place to spend night
2Koreans stunned by spike in heating costsKoreans stunned by spike in heating costs
3People attempt to cut surging heating costs with creative solutions People attempt to cut surging heating costs with creative solutions
4Netflix series 'The Glory' draws focus to real school bullying Netflix series 'The Glory' draws focus to real school bullying
5Inflation weighs on households Inflation weighs on households
6'I was a stock investment addict': psychiatrist seeks to help addicted people through his book 'I was a stock investment addict': psychiatrist seeks to help addicted people through his book
7[INTERVIEW] Partnerships with Korean companies help Delta Air Lines' post-pandemic recovery INTERVIEWPartnerships with Korean companies help Delta Air Lines' post-pandemic recovery
8Korea's GDP shrinks 0.4% in Q4, 1st contraction in 10 quarters Korea's GDP shrinks 0.4% in Q4, 1st contraction in 10 quarters
9Gov't to double subsidies for vulnerable households as energy bills soar Gov't to double subsidies for vulnerable households as energy bills soar
10S. Korea to increase joint air defense exercises following N. Korean drone incursions S. Korea to increase joint air defense exercises following N. Korean drone incursions
Top 5 Entertainment News
1From period to action: different genre series set for FebruaryFrom period to action: different genre series set for February
2Yun Hyong-keun's hanji works come under spotlight in Paris for first timeYun Hyong-keun's hanji works come under spotlight in Paris for first time
3Shunsuke Michieda overwhelmed by Korean fans' support for his coming-of-age film Shunsuke Michieda overwhelmed by Korean fans' support for his coming-of-age film
4Miguel Chevalier's psychedelic digital universe takes audience participation to next level Miguel Chevalier's psychedelic digital universe takes audience participation to next level
5Kim Hyun-joo says humanity is at heart of action film 'Jung_E' Kim Hyun-joo says humanity is at heart of action film 'Jung_E'
DARKROOM
  • Nepal plane crash

    Nepal plane crash

  • Brazil capital uprising

    Brazil capital uprising

  • Happy New Year 2023

    Happy New Year 2023

  • World Cup 2022 Final - Argentina vs France

    World Cup 2022 Final - Argentina vs France

  • World Cup 2022 France vs Morocco

    World Cup 2022 France vs Morocco

wooribank
CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Contact Us
  • Products & Services
  • Subscribe
  • E-paper
  • RSS Service
  • Content Sales
  • Site Map
  • Policy
  • Code of Ethics
  • Ombudsman
  • Privacy Statement
  • Terms of Service
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group